Everyday we see new companies formed and when they are able to grab some business in the Markets and want money to expand, they come out with an Initial Public Offering (IPO) wherein they collect the money from the market for their future ventures. This forms the very basics of Stock Markets. We have written various articles on explaining the basics of Stock Markets on EquiTipz. Some of the Articles are listed below:

• Why does a company issue stocks?
• What makes stock prices go “up” and “down”?

While surfing the Internet today, I found a very interesting Animated Video on YouTube explaing the whole phenomenon how Stock Markets Work, What Makes the Stock Prices go Up and Down, and many more interesting information, which I thought to share with the readers. This funny but very informative video explains how companies go public and sell stocks to the investors. A basic primer of the capitalist system and how it is making our lives better. When we remember the basic purpose of the stock market, we can better understand why income investments are the best. Good companies use our initial capital to create goods that are in demand in the world markets. Buying and selling feverishly is inefficient and not effective.

So, watch out the video below which answers many questions and reveals many interesting facts.

Hope you have enjoyed the video and it has helped to clarify many of your doubts about the stock markets. If you still have any questions in mind, please feel free to ask in the comments form below.

For Further Reading:

1. How to Short Sell: Earn in the Falling Markets?
2. Top 5 Stock Tips for Beginners
3. What makes stock prices go "up" and "down"?
4. Stock Picking – Which stocks to buy?